Leasing or Hiring Catering Equipment
When we speak with customers about leasing new catering equipment for their restaurant, they often mention how their catering supplier has also offered them a hire option. It can be difficult to know the differences and advantages between hiring and leasing catering equipment.
WestWon have written a short guide outlining details of both arrangements, helping you make an informed decision whilst offering guidance about which is best for your business.
Catering Equipment Hire
Equipment hire is a perfect choice for companies requiring catering equipment for a short-term period. Whether it’s for an anticipated event such as a wedding, christening or large birthday party, hiring equipment helps ensure your customer’s needs are met. It could be your restaurant needs supplemental equipment for peak seasons of the year such as Christmas or New Year. You can hire the equipment, paying for it as you use it but only for the time required. When the need passes, you return it.
Especially for events, hiring can be useful as you can also hire smaller items such as cutlery and linen. However, with some restaurants hiring equipment over longer terms, while this saves your company’s cash flow by not paying for the equipment upfront, you will never own the equipment.
Catering Equipment Leasing
Leasing is the smart way to spread the cost of equipment with equal monthly payments from 1 year up to 5 years. At the end of the term, you have the option to purchase the equipment outright. This means you are free to use, sell or dispose of the equipment as you wish.
Leasing is often much cheaper than the cost of hiring equipment, meaning your restaurant may be paying a higher amount for equipment that your business will never own. Leasing equipment over a 3-year fixed term means the rate of interest is cheaper than hiring equipment. This could save your company money in the long term. If you would like a free no obligation quote to compare a lease cost with your hire quote, contact us. We’re happy to assist.
Leasing also gives a customer additional tax benefits which are not available when hiring equipment. 100% of the lease payment is tax deductible against a company’s corporation tax. This deduction often makes it cheaper than not only the cost of hire, but also cheaper than paying cash for the equipment!
While you cannot lease smaller items such as cutlery, linen, china or glasses, many restaurants choose to fund other equipment on the same lease agreement, such as furniture, EPOS and even the fit out of the restaurant.
For more information on leasing equipment for your restaurant or if you would like a free quotation, contact us on 01494 611 456.
Written by George Shillingford.